Crypto Legal Framework

Definition ∞ This refers to the body of laws, regulations, and judicial interpretations that govern the creation, distribution, and use of digital assets. It provides the legal structure within which cryptocurrencies and related technologies operate. Understanding this framework is crucial for assessing the legitimacy and risks associated with various digital asset ventures.
Context ∞ The crypto legal framework is currently a subject of intense debate and development worldwide, with significant attention on how existing securities laws apply to digital assets. Regulators are grappling with classifying tokens, defining responsible parties, and establishing oversight mechanisms for decentralized finance (DeFi) and non-fungible tokens (NFTs). News often centers on new legislation, enforcement actions, or court rulings that clarify or alter the legal standing of digital assets.